The fund will focus on value-added and "opportunistic" multifamily investments in the US, Schwartz says. "We will be able to acquire multifamily properties; but, in addition as a strategy, we will also be able to buy debt secured by multifamily properties," he says. Schwartz says that he does not expect debt acquisition "will be a big component of the fund."

Fund X is the fourth fund the firm has done as a joint venture with the California State Teachers Retirement System. The company expects an internal rate of return from the "low to mid teens, net," Schwartz tells GlobeSt.com. Waterton is pursuing deals but has not acquired any properties for the new fund yet, Schwartz says. "We have not actually closed on any apartment acquisitions since the fall of 2007 (for the ninth fund)," he says. "It is a difficult acquisition environment."